The curious case of Subrata Roy: Highlights of the Sahara-SEBI story

The Supreme Court of India on Wednesday issued a non-bailable warrant against Sahara chief Subrata Roy for non-appearance despite a summon and contempt of court. The Securities and Exchange Board of India (Sebi) had asked Sahara to refund over Rs 20,000 crore to investors but Sahara failed to do so repeatedly.

The Supreme Court of India on Wednesday issued a non-bailable warrant against Sahara chief Subrata Roy for non-appearance despite a summon and contempt of court. The Securities and Exchange Board of India (Sebi) had asked Sahara to refund over Rs 20,000 crore to investors but Sahara failed to do so repeatedly.

Below is an explanation of the case till date starting in 2011:

-Sebi restricted the promoters and directors of Sahara group companies, Sahara India Real Estate Corporation and Sahara Housing Investment Corporation, from raising any capital through the issue of securities including any form of securities.

-Lucknow bench of Allahabad High Court stayed Sebi's order in January 2011.

-As per the order, Supreme court turned down Sebi’s plea to stop two firms from raising money from investors, but allowed it to seek information and issue advertisements to inform investors that the matter is awaiting investigation.

-Sebi issued a notice on its website cautioning investors against buying debentures of Sahara

-Flummoxed by this, Sahara India Real Estate sent a legal notice to Sebi.

-The Lucknow bench of Allahabad High Court vacated the stay order in 2011 followed by Sebi issuing a public notice alerting investors about ban on money mobilisation by two Sahara group firms.

-Later on, Sahara Group filed a petition in Supreme Court challenging the Allahabad High Court order, which made it mandatory for the company to share full details of investors participating in its fund-raising exercise with Sebi.

-Sahara accused Sebi of defaming the company following this incident.

-SC directed Sebi to proceed with its investigation into financial instruments used by two Sahara group companies to raise money from the public.

-Sahara appealed in Supreme court again that Sebi has no jurisdiction.

Sahara chief outside Supreme court on wednesday.

-Supreme court directed Sahara to approach SAT against Sebi order on OFCDs.

-SAT upheld Sebi order against Sahara to refund money in October 2011.

-Supreme court gave Sahara group companies three weeks duration to choose between two courses to secure the investments made by the public in the scheme -- either to give sufficient bank guarantee or attach properties worth the amount.

-A Supreme Court bench ruled in favour of Sebi and ordered the two Sahara companies to return its OFCD investors the full outstanding amount with interest.

-Sahara companies filed a review petition in the Supreme Court in October.

-Sahara claimed that it sent documentation to Sebi within the 10-day limit. But Sebi did not accept it as the documents arrived on the 10th day

-Sebi files a contempt petition against Sahara in SC saying that the company was flouting SC direction to make refunds as soon as possible.

-Finally, the apex court barred Subrata Roy from leaving India.

Subrata Roy moved to Apex court asking for cancellation of non-bailable warrant

UP police try arresting Sahara chief but find him untraceable:

Police raid Sahara chief’s home, does not find him a team of Lucknow police on Thursday raided the house of Sahara chief Subrata Roy, who, earlier in the day, moved to Supreme Court seeking cancelation of non-bailable arrest warrant issued against him.

Armed with Supreme Court’s non-bailable warrant, the team of Gomti Nagar police station reached ‘Sahara City’ housing his residence at about 4.30 pm to arrest him but failed to find him there.

High drama marked the police action as the police conducted searches inside the residence. Entry into and exit from the premises, which is spread in over 270 acres, was barred but the police exercise did not yield fruit.

“The team is there to execute the non-bailable warrant issued by Supreme Court”, Circle officer, Gomti Nagar, VS Mishra.

Earlier in the day, the Sahara Chief offered unconditional apology to the apex court for his non-appearance.

Roy also sought recall of the apex court’s Wednesday order in which non bailable warrant was issued against him and police was ordered to arrest and produce him before it on March 4.

The order to arrest Roy was issued for his failure to appear before the apex court in a contempt case arising out of non refund of Rs 20,000 crore to investors by two of his companies.

A bench of justices K S Radhakrishnan and J S Khehar had rejected Roy’s plea to exempt him from personal appearance on the ground of ill-health of his 92-year-old mother.

Senior advocate Ram Jethmalani, who had appeared for Roy, had produced a medical certificate from Sahara Hospital, Lucknow, on the condition of Roy’s mother and recommended that he be allowed on “humane as well as medical grounds” to be with his mother at this stage.

The bench had said since it had on February 25 declined to grant exemption, it did not find reason to accede to the renewal of the request made yesterday.

The three directors of Sahara Group, who were also summoned along with Roy, had appeared in the court yesterday.

The court had on February 20 come down heavily on the Sahara group for not refunding Rs 20,000 crore of investors money despite its order and summoned Roy, Ravi Shankar Dubey, Ashok Roy Choudhary and Vandana Bhargava, directors of its firms Sahara India Real Estate Corp Ltd (SIREC) and Sahara India Housing Investment Corp Ltd (SHIC) to be personally present before it yesterday.

Also check full reports here:

Subrata Roy may face arrest; UP police reaches residence

UP police fails to arrest Sahara chief Subrata Roy

Below are the Twitter reactions for the case:

it is illegal under the Predictable Puns Act to describe Subrata Roy as Be-Sahara!He can still bring out full page adds claiming innocence.